When leaves office in January, Donald Trump will immediately resume control of the Trump Organization, which has been run on a day-to-day basis by his two oldest sons, Don Jr. and Eric, for the past four years. And, based on a report from the Wall Street Journal, the soon-to-be former president is walking into a company that only be described as a financial basket case:
“The Trump Organization might soon slim down. Several properties are for sale, including its Washington hotel and two skyscrapers in New York and San Francisco that are part-owned by the Trump Organization. The organization also has been considering selling its Seven Springs estate outside of New York City,” the report states, adding, “Any sales could help the family avert a lending crunch. The Trump Organization has more than $400 million of debt due in the next few years and many lenders have indicated they are wary of doing business with Mr. Trump.”
The majority of that debt is owed to German financial giant Deutsche Bank, which has already let it be know that it’s prepared to seize Trump’s financial assets to cover the money the company owes:
“If Trump is not in office, Deutsche Bank executives feel that it would be easier for them to demand repayment, foreclose if he is not able to pay it off or refinance, or try to sell the loans, according to two of the three bank officials.
“Since Trump has personally guaranteed all the loans, Deutsche Bank could also seize the president’s assets if he is unable to repay, two of the three bank officials said.”
Things are only going to get worse once Trump is out of office, as he’ll no longer be able to rent out rooms to the Secret Service or demand fealty from foreign governments by insisting they stay at his hotels when they’re in Washington, D.C., and that could be especially bad news for the iconic Trump Tower in New York, which has already seen a decrease in revenue.
And then there’s the pending legal problems Trump and the Trump Organization are facing, most notably in New York, where two separate investigations threaten to drag Trump into court and run up massive legal expenses:
“Financial challenges facing the Trump Organization are compounded by long-running legal issues, with New York probes of Mr. Trump’s businesses set to continue after he leaves office. Mr. Trump has also been contending with an Internal Revenue Service audit of his finances.”
If Donald Trump thought things were bad for him while he was president, he’s about to discover what it’s like to be fighting not only for his freedom, but also to keep from being flat broke soon after he becomes a private citizen once again.
Karma is one mean son of a bitch.